Being Speech by Mr. Babajide Olusola Sanwo-Olu, Governor of Lagos State, at the commissioning of the Lagos Commodities and Futures Exchange, and Launch of Eko Gold Coins, on Thursday July 28, 2022.  

Protocol

It is my pleasure to be here with you today, on this occasion of the historic commissioning of the newest financial marketplace in Africa’s largest subnational economy: the Lagos Commodities and Futures Exchange. Lagos, as you all know, is already home to the Nigerian Exchange Group (NGX), and the FMDQ Group.  

There is of course also the International Finance Center being developed by the Central Bank of Nigeria, here in Lagos. All of these go to demonstrate the prime position that Lagos occupies, as a global center of finance and investment.  

As a government, we are constantly asking ourselves the question: how can we improve the enabling environment for business and investment in Lagos State? How can we better fulfill our catalytic role, attracting cutting-edge ideas and innovation, and an unending inflow of money to translate these ideas into viable businesses and institutions?  

All of our policy-making is geared towards positively answering these questions. Today, ladies and gentlemen, history is being made with the formal commissioning of this Securities and Exchange Commission (SEC)-regulated marketplace, dedicated to the electronic trading of Nigerian agricultural commodities, solid minerals, and oil and gas, and to globalizing this trade, through partnerships with other Commodity Exchanges around the world.  

But that is not all. In addition, this morning, we will be witnessing the launch of a Gold Spot Contract Series, valued at 100 million Pounds Sterling, comprising gold-backed financial instruments that will be listed and traded on the LCFE. What this means, is that these spot contracts can be redeemed at any time for specially-made gold coins at designated vaults.  

We will also be witnessing the launch of the first tranche of special gold coins for which the Spot Contracts can be redeemed. Those gold coins will be known as the “EKO GOLD COIN”, and this first tranche -- designed as a proof-of-concept -- will comprise 58 units of the coin, valued at over 100 million Naira. After this proof-of-concept launch, I am told that future listings of the Eko Gold Coin will take place in tranches of 10 million Pounds Sterling.  

This is no doubt the beginning of a new and exciting chapter for the investment community in Nigeria and even abroad. We are seeing a maturing of the investment marketplace, and a welcome expansion of the opportunities available for those who want to invest their money.  

I’m very sure that I do not need to go to extra lengths to extol the virtues of gold to anyone here. Against the backdrop of increasingly volatile economic conditions around the world, it is obvious that gold and other precious metals are enjoying renewed attention, on account of their relative stability, and their ability to serve as a hedge against inflation.  

This “EKO COIN” is a representation of Lagos, our spirit, our culture, our infrastructure, our heritage. The symbol of the Lekki-Ikoyi Link bridge on one side of the coin represents the modern megacity that this great State is, while also symbolizing the bridge that unites all the residents of Lagos, from all walks of life, across ethnic, religious, partisan and class divides.  

The symbol of the three Wise Men on the other side of the Coin represents the deep-rooted cultural and value systems upon which Lagos State was founded, and is a reminder of where we are coming from, and how important those values remain, even in a rapidly changing and modernizing world.  

The “EKO COIN” therefore represents Culture, Values, Inclusivity, Modernization. It will further position Lagos State as a Center of financial innovation and excellence, as well as a gold-trading hub that can rival any other across the world.  

The benefits of launching this tradeable gold coin here on the floor of the LCFE are immense. The Nigerian Diaspora and foreign individual and institutional investors now have an opportunity to invest in and trade Nigerian gold, in a fully regulated and credible marketplace. Lagos as a State, will also benefit from the payment of royalties and taxes, associated with the trade in precious metals.  

I am also confident that we will see a deepening of our emerging commodities trading ecosystem, as well as increased investment in agriculture, mining, and oil and gas exploration in Nigeria, to take advantage of the numerous opportunities offered by the existence of the Lagos Commodities and Futures Market (LCFE).  

Distinguished guests, ladies and gentlemen,  

My task here today is a very simple yet profound one: to unveil and launch these new Gold products: the Gold Spot Contract Series, and the Eko Gold Coin, the first of many gold and gold-backed products that will feature on the trading floor of the Lagos Commodities and Futures Exchange.  

I congratulate the Board and Directors of the Lagos Commodities and Futures Exchange, the Securities and Exchange Commission, and the talented and hardworking professionals behind all that we have gathered to celebrate and launch today.  

I am very excited about the future, and I look forward to seeing this new venture thrive, creating prosperity and opportunity for the greatest number.  

I thank you all for listening.  

Babajide Sanwo-Olu  

Governor of Lagos State 

July 28, 2022